2 Minutes March 27, 2014 - Laserfiche WebLink

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South Bend Redevelopment Commission Regular Meeting—March 27, 2014 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (2) continued... Mr. Inks asked what term is expected for the tax abatements. Mr. Fielding responded that their contractors cost estimates are not in yet,but staff is estimating between seven and nine years. Mr. Downes asked about the time for completion of building one. Mr. Fielding responded that they hope to start this summer, with completion expected eight to nine months thereafter. The development agreement stipulates it must be built by fall 2015 or the clawback will be exercised. Ms. Jones asked whether there is a schedule for when jobs are expected to be added as a result of the project. Mr. Fielding responded that there is not. It is anticipated that each building will result in a minimum of 40-45 employees. The national average for office buildings is one employee for every 175 sft. We are making a very conservative estimate of one employee for every 1,000 sft. Mr. Varner noted that the cost per acre is quoted in the agreement at two different amounts. Mr. Fielding responded that staff noticed that error and it has been corrected. Mr. Varner asked what types of improvements will be funded by the city's investment. Mr. Fielding responded site improvements,utility extensions, curbs,roads,possibly facade enhancements,though we would rather not put it toward that. However, some of the buildings may be visible from multiple streets so we would want the facade to look nice from front and back. Mr. Varner asked whether the city has to spend the full amount committed. Mr. Fielding responded that there is a required minimum and a cap for both the city and the developer. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried,the Commission approved the Development Agreement with Great Lakes Capital for multi- tenant buildings at Ignition Park. (3) Staff update. Mr. Zeeb gave the update on Blackthorn Golf Course. He noted that on February 22,2013 the Blackthorn Golf Course bonds were paid off. On March 20,2013 the Redevelopment Authority the transfer of ownership back to the Redevelopment Commission. The ownership transfer was approved by the Commission on March 28, 2013, seventeen parcels. The golf course has requested additional capital investment from TIF. Prior to making any additional investment into the asset, we need to understand the overall value. Staff will be sending out requests for proposals for an appraisal of the property. Staff will provide an 5